Gold In Gartman Terms? There's An ETF For That

Dennis Gartman, already humiliated beyond any hope of reputation salvage in the media, appears to be refocusing his keen talents and acute sense of extrapolating instantaneous market momentum 1 millisecond into the future, to a renewed direct exposure in the capital markets. And while hoping that market junkies have forgotten the epic disaster that was his last foray into ETF-land with ONN and OFF, Gartman today announced that he is now launching his signature shtick as a brand new ETF: gold... in non-dollar terms.

As Gartman himself announced today:

We are excited to announce the launch of a series of exchange?traded funds sponsored by AdvisorShares, the Gartman Gold/Yen (GYEN), Gartman Gold/Euro (GEUR), and Gartman Gold/British Pound (GGBP) ETFs. Treesdale Partners, LLC, a New York based registered investment advisors, will serve as the portfolio manager for the three ETFs. Treesdale will also sub?advise AdvisorShares International Gold ETF (GLDE), an ETF with a balanced allocation to the three previously mentioned ETFs as well as additional exposure to gold in US dollars.

These funds will provide investors with an opportunity to buy gold financed in foreign currencies.

AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), announced today the launch of four industry-first ETFs – providing gold exposure in different currency terms through a 40 Act structure – which will begin trading on Wednesday, February 12, 2014:

These ETFs are sub-advised by Treesdale Partners, a New York, New York-based registered investment advisor with an established expertise in managing fixed income-based and currency/commodity-based alternative investment products. Additionally, Dennis Gartman, editor and publisher of The Gartman Letter, will lend his institutional insight on educating advisors and investors about the AdvisorShares gold ETF suite as well as the merits of trading commodities in different currency terms during various market periods.

The investment objectives of the AdvisorShares Gartman Gold ETFs seek to provide positive returns by utilizing their respective currencies to invest its assets in the gold market. In pursuing the GEUR, GGBP and GYEN investment strategies, Treesdale will provide access to a popular investment approach from Mr. Gartman: using different currencies to fund a gold position. GEUR utilizes the European Union's Euro; GGBP utilizes the British Pound; GYEN utilizes the Japanese Yen. The foreign currencies are obtained through the sale of either exchange-traded currency futures or "over the counter" foreign exchange forward contracts. The funds alternate currency exposure seeks to neutralize U.S. dollar risk, and assesses the dollar and corresponding foreign currency yield curve, determining the most positive net effect to purchase gold in different currency terms.

The investment objective of the AdvisorShares International Gold ETF (GLDE) seeks to provide positive absolute returns by investing in exchange-traded products (ETPs) that provide diversified exposure to the international gold market. In pursuing the GLDE investment strategy, Treesdale will provide access to currency diversification, rather than using the U.S. dollar exclusively, actively allocating its underlying gold positions to seek consistently attractive valuations. Along with the AdvisorShares Gartman Gold ETFs, GLDE allows access to a highly specialized portfolio manager with liquidity, transparency, and operational and tax efficiency. Uncommonly, the four gold ETFs are not expected be subject to unrelated business taxable income (UBTI) and schedule K-1s, which are typically present in commodity-linked investments.

"Dennis Gartman's widely recognized analysis and commentary among leading corporate, financial and trading institutions is well-known, and we believe Treesdale adds another deeply experienced portfolio manager to the AdvisorShares active ETF suite," said Noah Hamman, chief executive officer of AdvisorShares. "We are pleased to partner with their combined expertise in bringing more innovative investment solutions to the active ETF marketplace."

Ade Odunsi, managing director of Treesdale and portfolio manager of GEUR, GGBP, GYEN and GLDE added, "By choice or not, many gold investors today explicitly express that they expect the value of gold to increase relative to the U.S. dollar. As a result, investors are exposed to risk factors that affect the supply and demand for gold, as well as the various factors that might impact the value of the U.S. dollar on international currency markets. With these active ETFs, we believe investors now have unprecedented access to efficiently hold gold in different currency terms to avoid undesired and concentrated exposure to a single currency, such as the U.S. dollar."

"Throughout the course of my career, I've discovered first-hand that a diligent and comprehensive approach to trading and investing can deliver positive returns to a diversified investment portfolio," said Mr. Gartman. "Among those lessons, I've learned that owning different commodities, especially gold, in different currency terms can provide added-value for any investor's alternative allocation."

In terms of scams out there, at least this one has a semi clever twist to it.

with the AdvisorShares Gartman Gold ETFs, GLDE allows access to a highly specialized portfolio manager with liquidity, transparency, and operational and tax efficiency. Uncommonly, the four gold ETFs are not expected be subject to unrelated business taxable income (UBTI) and schedule K-1s, which are typically present in commodity-linked investments.

It is more about"let it be so" (the word FIAT is latin for let it be so, or decree)currency exchange rates than about the, "value" of gold. If an arbitrary ruler other than the U.S. says let it be so, then there is a change in the price of gold in the arbitrary rulers currency. Get it?

Saying there is no difference is similar to Mish's dimwitted remarks about dollar hegemony.

Mish thinks there is no such thing as dollat hegemony because he thinks traders can simply trade dollars for any currency of their choosing at any given instant.

Nevermind that "let it be so" currencies are all about extrapolating the pasts confidence into the future and have nothing ro do with anything instantaneous.

I could go on... For example how many central banks around the wotld have purchased U.S. treasuries of various denominations and durations since WWII" Do You think that can all be unwound instantaneously?

Being a layman, I don't fully understand it either, but I think the Idea is it's a carry trade ETF where they borrow in a depreciating currency to buy an appreciating (relative to the borrowed currency) asset (Gold), and when they cash out they keep the spread.

So I borrow yen to buy a house and if yen drops and I sell the house for USD, I keep the spread between the two currencies plus any appreciation in the asset price, because I repay my loan in yen which during my ownership has weakend against the dollar.

The only reason this crap works is because the BOJ is printing faster than the FED. I also imagine that huge amounts of leverage are in play in order to make any significant money at all, which is why these fucks panic when the trend reverses. I could be way off and I would love to have someone more knowledgable correct me.

Another way of putting it would be that hedge fund types are borrowing money to bet on which fiat horse will "win" the race (the central banks being the flogging jockeys)

There was a time when I would be suprised that a fund has appeared for this sort of ultra speculative bullshit, now it gets a shrug.

They have no choice but to let them rally - I'm short Barrick, the only way they can fuck over the miners is to pay me out on that short position - ha ha! But I'm long the juniors, so they're totally fucked either way!

YOU may talk o' gin an' beer When you're quartered safe out 'ere, An' you're sent to penny-fights an' Aldershot it; But if it comes to slaughter You will do your work on water, An' you'll lick the bloomin' boots of 'im that's got it. Now in Injia's sunny clime, Where I used to spend my time A-servin' of 'Er Majesty the Queen, Of all them black-faced crew The finest man I knew Was our regimental bhisti, Gunga Din.

The uniform 'e wore Was nothin' much before, An' rather less than 'arf o' that be'ind, For a twisty piece o' rag An' a goatskin water-bag Was all the field-equipment 'e could find. When the sweatin' troop-train lay In a sidin' through the day, Where the 'eat would make your bloomin' eyebrows crawl, We shouted "Harry By!" Till our throats were bricky-dry, Then we wopped 'im 'cause 'e couldn't serve us all.

It was "Din! Din! Din! You 'eathen, where the mischief 'ave you been? You put some juldee in it, Or I'll marrow you this minute, If you don't fill up my helmet, Gunga Din!"

'E would dot an' carry one Till the longest day was done, An' 'e didn't seem to know the use o' fear. If we charged or broke or cut, You could bet your bloomin' nut, 'E'd be waitin' fifty paces right flank rear. With 'is mussick on 'is back, 'E would skip with our attack, An' watch us till the bugles made "Retire." An' for all 'is dirty 'ide, 'E was white, clear white, inside When 'e went to tend the wounded under fire!

It was "Din! Din! Din!" With the bullets kickin' dust-spots on the green. When the cartridges ran out, You could 'ear the front-files shout: "Hi! ammunition-mules an' Gunga Din!"

I sha'n't forgit the night When I dropped be'ind the fight With a bullet where my belt-plate should 'a' been. I was chokin' mad with thirst, An' the man that spied me first Was our good old grinnin', gruntin' Gunga Din.

'E lifted up my 'ead, An' 'e plugged me where I bled, An' 'e guv me 'arf-a-pint o' water—green; It was crawlin' an' it stunk, But of all the drinks I've drunk, I'm gratefullest to one from Gunga Din.

It was "Din! Din! Din! 'Ere's a beggar with a bullet through 'is spleen; 'E's chawin' up the ground an' 'e's kickin' all around: For Gawd's sake, git the water, Gunga Din!"

'E carried me away To where a dooli lay, An' a bullet come an' drilled the beggar clean. 'E put me safe inside, An' just before 'e died: "I 'ope you liked your drink," sez Gunga Din. So I'll meet 'im later on In the place where 'e is gone— Where it's always double drill and no canteen; 'E'll be squattin' on the coals Givin' drink to pore damned souls, An' I'll get a swig in Hell from Gunga Din!

Din! Din! Din! You Lazarushian-leather Gunga Din! Tho' I've belted you an' flayed you, By the livin' Gawd that made you, You're a better man than I am, Gunga Din!

Haven't watched CNBS for a while...he still uttering his banal "good to be seen" answer to the host's "good to see you" intro? That limp attempt at humor should, by itself, be enough to disqualify him from being taken seriously.

But if you are buying gold then you are buying gold, you have no currency risk only gold risk and counterparty risk when it hits the fan and turns out the gold stocks you purchased are not actually backed by any gold.

If you own an ounce of gold then you own an ounce of gold, the paper currency you denominate it in is a seperate thing entirely... If you wanna hedge your currency there are loads of products to do that from forex to futures already.

Yea I know its just another scheme to gather assets and rake in fees but still... I don't get it

Is this still Zerohedge? It's plain to see that the people commenting and possible the author don't know what in the hell they are taiking about. All Gartman is doing is hedging out the "reserve" currency known presently as the US dollar. It's done all the time when trading oil. I don't know the other calls this Gartman character has made, but attempting to isolate Au from all the surrounding noise is a good idea.